Tourism Impact on Economy

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Title: MEASURING THE SIZE OF TOURISM AND ITS IMPACT IN AN ECONOMY[A] , By: Xiaoli Han, Bingsong Fang, Statistical Journal of the UN Economic Commission for Europe, 01678000, 1997, Vol. 14, Issue 4 Database: Academic Search Premier | | |MEASURING THE SIZE OF TOURISM AND ITS IMPACT IN AN ECONOMY[A] | | | |Abstract. Based on the definition of tourism given by the World Tourism Organization, the definition of industry and the concept | |of productive activities in the System of National Accounts, we show in this paper that tourism has a demand side and a supply | |side, and that the latter is defined by the former. Also, the supply side of tourism involves many industries in the economy and | |cannot be defined as a single industry. Therefore, we argue that aggregate measures of tourism should be built from the demand | |side. We also argue that the measure of the size of tourism and the measure of the contribution of tourism to GDP should be | |separated. While initial tourism demand is the best measure of the size of tourism, tourism driven GDP is the best measure of the | |contribution of tourism. The paper presents a method for deriving the two measures. The size measure is free of double counting | |and comparable to GDP, while the contribution measure provides a conceptually correct and statistically consistent basis for | |analyzing the supply side of tourism. | |1. Introduction | |Tourism is a fast growing economic

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